Read Time: 3.75 min

Hey Reader,

It's been unusually hot in New York City. I feel like we went from freezing temperature a couple weeks ago to over 80 degrees this week. Don't get me wrong, I love when it's warmth, but I also really enjoy the transitional in-between weather, ya know what I mean?

Now that you're up to speed, let's go build some wealth.

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👀 What I'm Watching

I'm watching you, let me explain.

If you've been investing in the stock market, your portfolio probably just had a really good week.

But if you're not and you went grocery shopping or pumped gas recently... it probably didn't feel that way.

That's because something weird is happening right now.

The stock market is at an all-time high and American's are feeling at an all-time low.

Yes, both things are true at the same time.

What's happening?

On the stock market side: the S&P 500 just crossed 7,000 points for the first time ever. The Nasdaq just hit 24,000 points.

The wild part? Just a few weeks ago, the S&P was down nearly 10% from its January peak. Then in two weeks, it gained more than 10% and blew past its old record.

On the other side: the Michigan Consumer Sentiment Index (basically a survey that asks Americans how they feel about the economy) just dropped to 47.6 in April.

That's the lowest it's ever been since they started tracking it in 1978.

63% of Americans are rating the economy as 'bad.'

So if everyone feels terrible... how is the heck is the stock market STILL going up?

Because the stock market is NOT the economy.

I know that sounds weird. But they measure completely different things.

The stock market tracks company profits and where Wall Street thinks those profits are heading.

Consumer sentiment tracks how YOU feel when you're buying pineapple pizza.

Remember the Iran war I've been covering for the past several weeks? (If you missed those, now's a good time to catch up on the previous newsletters.) The potential ceasefire talks and positive corporate earnings are what's getting Wall Street hopeful about the future.

PS: Wall Street doesn't really care about the price of your pineapple pizza (at least, not yet).

📝 The Breakdown

Here's how this impacts your money and wallet:

When the stock market is at all time highs and the economy feels terrible at the same time, it messes with your head.

Some of ya'll might be thinking 'I'm missing out on these gains, I need to go all in the stock market!!!'

But a big part of this rally was fueled by ceasefire expetations. Meaning if those talks fall apart, this could go down just as fast as it went up.

Others might be thinking 'The economy is crap... everything is falling apart, I should pull my money out.'

But how people feel about the economy isn't the same as the economy collapsing.

So what do you do?

Don't let either extreme drive your decisions.

✍️ Your Next Move

Here's what you need to do today:

1. Don't let this rally change your plan

If you're investing consistently (whether that's weekly or monthly), keep doing exactly what you're doing.

I tell most beginner investors to dollar-cost average (which is when you invest a fixed amount of money on a regular schedule, regardless of what the market is doing).

This works because you don't try to time the market. You buy when it's high, you buy when it's low, and over time it all smooths out.

A 10%+ jump sounds exciting but it doesn't mean you should throw more money in.

It's actually a sign that things are moving unusually fast which usually means more volatility is coming.

2. Keep a cash cushion that lets you sleep at night

Personally, I'm continuing to invest AND keeping a cash position in short term T-bills.

I might make a video about my current cash set up / system and all the places I'm keeping my savings and cash.

If you'd be interested in watching this video, could you reply 'PIZZA' so I know if I should make it or not?

And if there's anything specific you want to see in that video, just let me know.

3. Focus on what you can actually control

You can't control what Wall Street does and you definitely can't control the economy.

But you CAN control how you spend your money.

If you don't already have a system for tracking your money, grab my 7-Day Money Roadmap for free. It includes my Freedom Spending Plan which helps you allocate your money in a way that feels intentional and NOT restrictive.

🗓️ Behind The Scenes

Here's a quick recap of what I was up to this past week:

• I am officially getting old. I experienced my very first back muscle spasm attack on Tuesday. I was moving something and I felt my lower back get really tense then had to fall on the floor. It hurt when I tried to get up, so I just laid there for an hour. And this entire time, Benito was just chewing on his toys... watching me. I don't really know where it came from but I'm guessing it's cause I fell a bunch of times snowboarding last weekend?
• Coincidentally, this is also the first week I committed myself to doing more cardio. I told myself I was going to do 4x 45 min Zone 2 cardio sessions per week but then the back spasm thing happened.... so I'm putting that on pause until I get back to normal... hopefully soon but will keep y'all posted.

✅ Cool Things From This Week

• Money Tip of the Week: The 1 habit 77% of people who struggle with money have in common​
• ​The middle class is shrinking, but not for the reason you think.​
• ​The government's interest payments just topped $1 trillion a year. Here's why that's your problem.​